With the launch of Microsoft Surface tablets, Surface Pro and Surface RT, the company has dived into the ever-expanding tablet arena. Latest rumors suggest that the Surface tablets are expected to be launched along with the Microsoft Surface phones.

Nokia and Microsoft are hosting a joint Nokia World event in New York on Sept. 5. Rumors suggest that Nokia will be unveiling two Windows 8 smartphones at this event. Google translated text of Windows Phone German Web site WPArea raises the question why Microsoft is co-organizing the event with Nokia. Speculations are rife that the reason could well be Microsoft's announcement of the Surface Phone.

"A Windows Phone benchmarking app called WP Bench, has revealed the Microsoft Surface phone, which runs OS 8.0.9754.0, which is consistent with previous sightings of the Windows Phone 8 operating system," reported WPArea.

Tablet fans are eagerly waiting to lay their hands on the much-hyped Surface range of tablets, which are expected to sport high-end features. Expectations for the Surface tablets have reached fever pitch and if rumors of the Surface Phones bear fruition, then smartphone users will be hoping for high-end features in the Surface handsets too.

Gadget enthusiasts are enthralled by the slew of new smartphones and tablets that are expected to hit the shelves soon. If Microsoft unveils its Surface smartphones as anticipated, then current smartphone makers will have another challenger to contend with.

With smarphone and tablet market leaders like Samsung and Apple dominating the arena, time will tell if Microsoft can swivel and lace its way into the highly-competitive tablet and smartphone market.